Loop Industries forms committee to weigh sale or merger
Loop Industries' board has formed a Strategic Alternatives Committee to evaluate options including a sale, merger, going-private transaction or licensing deals. The move follows the separation of the Chairman and CEO roles, with the committee's first task to help secure funding for Loop's planned India recycled-PET joint venture. No timetable has been set.
Why this mattersA formal sale-or-merger review at a listed recycled-PET technology developer signals funding pressure on next-generation chemical recycling capacity ahead of stricter recycled-content rules.
- Loop Industries' board formed a Strategic Alternatives Committee on 17 September 2026
- The committee follows Jeff Geygan's appointment as Chairman, separating the Chairman and CEO roles previously held together
- Options under review include a sale, merger, going-private transaction, licensing deals, regional joint ventures and corporate restructuring
- The committee's immediate priority is securing Loop's required capital contribution and project-level financing for its planned India joint venture
- Founder and CEO Daniel Solomita remains in charge of operations, including the India joint venture and commercialisation
- No timetable has been set and the company has not decided on any specific alternative
- Lenders have proposed a 70/30 debt-to-equity split for the Infinite Loop India project financing, now in technical due diligence, with Loop and Ester Industries each covering 15% of the equity at about SOFR plus 3%
- Loop applied for a USD 28m clean-technology subsidy from the Indian state of Gujarat, payable over eight years if approved
- Monthly cash overhead was cut to USD 500,000, against total liquidity of USD 3.6m as of 31 May 2026
- Loop signed a letter of intent for 15,000 tonnes of recycled PET with a separate textile apparel brand, which has indicated total annual demand appetite of up to 90,000 tonnes